People care about quality because it is vital to the customer. WRONG

People care about quality because it’s the company policy to do so. WRONG

People care about quality because it’s the right thing to do. WRONG

People care about quality because…. WRONG AGAIN

People care about quality only if they can benefit from it personally.

It doesn’t matter if you speak with the CEO or an assembly line operator. CEO knows that if the quality of the product or service will be poor sales will start to drop. Assembly operator will keep on good workmanship to secure his monthly bonus.

If you want to make a difference in quality, continuous improvement, change management, lean etc. you need to master the only language that everyone speaks.

The only universal language of the quality world is MONEY.

It sounds brutal, doesn’t it? I can sense resentment from some of the readers. How dare you? Money is not the key to quality! It’s all about the culture, people and trust. Let me stop you there. If you honestly believe that all successful businesses have been built only on those values, then you must be high.

Culture, people and trust are paramount to any successful company but will never substitute the monetary investment that business requires to grow.

Example? No manager will approve a 5S program only because the workplace will look better. The will seek added value:

• • Improved productivity

• • Reduced downtime

• • Zero accidents
  • etc.

All of the above carries cost implications. Cost equals money. Do you see where I am going with this?

Before You talk Money.

Asking for financial investment in any discipline is pointless if you don’t know your subject matter inside out. Why would anyone release funds for your improvement project if you can’t provide a return on investment data?

Two fast lane roads to knowledge:

1. 1. Read. Simple as that. There are thousands of books and articles available for free in your local library or online. Don’t take the shortcut called “training”. Nicely framed certificate of attendance is worth absolutely nothing in the real world. Professionals can easily verify today actual knowledge and experience. Save yourself the embarrassment.
   2. Visit the centres of excellence. There are plenty of world-class level factories, and service orientated businesses that open their doors to those who crave knowledge. Invest your time and see how quality is defined by people who live it. If you have never done this before trust me – it’s by far the best investment you can gift yourself.

Why are these two options the best?

If you read a book or witness part of the manufacturing process, no one will interfere with your interpretation of data. No one will try to sell you anything. None will try to persuade you to follow this or that. They might try, but the initial seed of information has been planted in your head with no prejudice.

How to speak money language?

I can’t stress enough the importance of being an expert in your discipline if you want to stand a chance of securing investment for your idea.

First, let us agree on the position of the quality professionals in the business.

Quality professionals are holding a central role in any respectable business. Is it different in your case? Ouch, you may want to reevaluate your employment options, my friend.

The growth of the business is highly dependant on relationships between three high-level stakeholders: Customer, Factory & Supplier.

I have listed some of the initiatives that would typically find a good response from relevant parties.

Customer orientated projects:

• • Reduce the number of customer complaints

• • Lower the failure rate of products
  • Improve aftersales response time

Factory orientated projects:

• • Reduce scrap level

• • Improve First Pass Yield
  • Introduce automated test equipment

Supplier orientated projects:

• • Develop better material specifications

• • Invite suppliers to FMEA workshops
  • Introduce Supplier Rating System

Here is where the money talk starts.

Shall we agree that all the initiatives listed above are good for business? I am pretty sure that top management would applaud your enthusiasm and eagerness to make a difference. However, every activity requires sufficient resource to materialise. Resource equals money!

Always consider financial implications before embarking on the new business changing project. No matter how great your idea is if the company will not benefit financially from it. Say no to people who tell you differently. They will slow you down!

But hey! Now you know the rules, so there is only one thing left to do.

Justify your projects financially.

Example 1 – Investment in new automated test equipment.

• • How much can time per operator be saved? Time equals money.

• • How much can you reduce the testing error rate? Lost time, potential rework – material equals money.
  • What’s the potential productivity improvement? Time + material = money

Example 2 – Introduce Supplier Quality Management

• • Shift the cost of a non-conforming product to the supplier (time spent on screening, reworking etc.). How? Debit suppliers who fail to take full responsibility for the quality of delivery.
  • Request participation in aftersales cost for issues related to poor quality of supplied items

Here is an example of a simple calculator you can use:

If you struggle to find a financial justification for your project feel free to share your idea here or via email.

Good luck!